Dollar slides to over two-month low as weaker U.S. data dents rate-hike bets

The U.S. dollar index slid to a two-month low as softer U.S. data drove a repricing of Fed tightening expectations, lifting EURUSD and marginally supporting JPY despite weak Japanese growth. With Jackson Hole approaching, focus is shifting to how policymakers interpret recent data and whether BOJ policy normalization follows. Prior U.S.-Japan intervention complicates positioning by tempering, but not removing, carry-trade incentives.